A Federation colony was established on planet Tau Cygna V in the 2270s in violation of the Treaty of Armens. The Sheliak exercised their rights to order the colony removed in 2366. If that was not done, they intended to do so violently.

When the colony was discovered to be much larger than anticipated with a population of 15,253, CaptainJean-Luc Picard tried to negotiate a three week delay so the colonists could be removed. When the Sheliak refused to compromise, Picard resorted to using a clause in the treaty which gave him the right to ask for third-party arbitration of the dispute. As the petitioner had the right to choose the adjudicator, he selected the Grizzelas, a species who were in their six month long hibernation cycle at the time and obviously could not hear the case until they awakened. Stunned at being outmaneuvered by the Federation, the Sheliak agreed to the original three week proposal. (TNG: "The Ensigns of Command")